HB 24-1148

House Bill 24-1148, which has been signed into law, updates Colorado’s consumer lending laws by changing how nonbank lenders can calculate and charge interest rates and fees for loans. This affects consumers who take out loans from companies that aren’t traditional banks. The bill also gives the state more flexibility to set rules around these charges without needing to align with federal regulations as strictly as before. In practice, this means that Colorado now has greater control over how nonbank lenders operate within its borders.

Official Summary

The bill amends the Colorado "Uniform Consumer Credit Code" (UCCC) to change the terms and interest rates a nondepository institution may charge in a consumer credit transaction. For a consumer credit transaction in which a nondepository institution makes a supervised loan or a consumer credit sale, the bill amends the calculation of the total amount of the finance charge that the nondepository institution may contract for and receive to include the total cost of specific additional charges. The bill amends the additional charges that the nondepository institution may contract for and receive and subjects specified additional charges to rule-making by the administrator of the UCCC (administrator). The bill removes the requirement that the rules issued by the administrator be consistent with the federal "Truth in Lending Act" and the federal "Consumer Leasing Act". (Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.) (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Votes